South Korea Police Form Crypto Money-Laundering Task Force, Cite Tether Misuse

The National Police Agency says it secured a 100 million won budget for crypto-tracking training as unregistered virtual asset exchangers expand across Seoul, South Korea.

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Summary

South Korea’s National Police Agency has created a task force focused on cryptocurrency-related money laundering and secured a 100 million won budget for crypto-tracking training. Police said Tether, a U.S. dollar-pegged stablecoin (crypto token designed to hold a fixed value), is being used for illicit laundering, while unregistered virtual asset exchangers are spreading across Seoul, South Korea. Authorities said they plan to pursue money laundering as a standalone offense under the Specific Financial Information Act (South Korea anti-money-laundering law), a move that underscores tighter enforcement in a market where stablecoins and informal crypto exchange services can be used to move funds outside regulated channels.

Terms & Concepts
  • Tether: A U.S. dollar-pegged stablecoin, designed to maintain a fixed value and widely used to move funds across crypto markets.
  • Stablecoin: A cryptocurrency designed to track a stable asset, usually a fiat currency such as the U.S. dollar.
  • Money laundering: The process of disguising the origin of illicit funds so they appear legitimate, including through digital assets and exchange networks.